I'm NOT complaining, but why is our tax refund so huge this year?

[katiesmom2]

Are there some new tax credits or something this year?

We are two parents with 2 kids (5 and 3). Our income hasn't changed much at all, but Dh and I are both getting close to $3500 back.

We did the fitness tax credit for the first time this year, but I know that alone wouldn't account for the big difference.

I'm hoping our tax guy didn't make a mistake. Would love to pay off some stuff and take a little vacation!

 

[MikeyNS]

Isn't there a new $2000 tax credit per child this year? I forget if it's new or not.. but that might explain some of the difference.

 

[mdennylusk]

Yes, the tax credit of $2000 per child is new this year. Also, the employment tax credit went up by $750 this year to $1000 and the basic personal amount tax credit also went up.

 

[FirstTimeDisneyDad]

The tax credit of $2,000 per child would have been applied to your Basic Exemption and changed the amount of tax withheld at the source (employer) - so that in itself would not generate a payable tax decrase.

Also, I believe it generates about 17% of actual tax savings per child - $340 each because of how it is applied - and only one parent can claim, not both.

In any case - enjoy!

 

[snickerboo]

We didn't get anymore than usual. The answer is probably that your employer overcharged you on something. One year we got over $3000 back and it was because they overtaxed dh's bonus.

 

[crash2000]

Are there some new tax credits or something this year?

We are two parents with 2 kids (5 and 3). Our income hasn't changed much at all, but Dh and I are both getting close to $3500 back.

We did the fitness tax credit for the first time this year, but I know that alone wouldn't account for the big difference.

I'm hoping our tax guy didn't make a mistake. Would love to pay off some stuff and take a little vacation!

well the fitness credit is only worth upto $500, and of course by the time they work it out you see very small amount of that...

do you pay the tax guy, based on the amount of your return?

and tax's are pretty easy todo yourself, just check your numbers yourself...on a spare tax form , and see where things are different.

 

[nepean]

The changes this year have given most working families approximately $700 extra back. The $2000. per child, $500. fitness, increase in personal deduction by $800. and $750. increase in working deduction are worth 15% of federal tax dollars. Many of these deductions are not equalled by the provincial taxes. If you both got $3500. back either your employer's withheld too much tax or there is a mistake. It seems strange that both of you would get that much back. Did you have tuition, large RRSP contribution or high day care costs? Something must be different than last year. Compare the two returns. Does your tax preparer not provide a five year comparision? The software I use for my clients is the most common professional software and it gives the client many comparable reports. I would check.

 

[BKMETV]

The one major change in the taxes this year is the ablility to split pension income.

We ended up getting a pile back this year...we usually pay, but the new tax changes allow us to split my husband pension. He retired at 43 from the RCMP and has another job. The pension he receives from the Mounties always screws up our taxes.

...and the best part is its helping pay for a trip to DISNEY!!

 

[katiesmom2]

and tax's are pretty easy todo yourself, just check your numbers yourself...on a spare tax form , and see where things are different.[/QUOTE]


Thanks - I'll do that. I've done my own taxes before, but we own 2 businesses now, so we have them done for free as part of our business taxes.

We will definitely be looking everything over closely before we go out and spend the money. That is my worst nightmare - spend it and then have them reassess you!

 

[esdras]

and tax's are pretty easy todo yourself, just check your numbers yourself...on a spare tax form , and see where things are different.

Thanks - I'll do that. I've done my own taxes before, but we own 2 businesses now, so we have them done for free as part of our business taxes.

We will definitely be looking everything over closely before we go out and spend the money. That is my worst nightmare - spend it and then have them reassess you!

Just as a suggestion for "running the numbers" yourself - as long as you have all of your info onhand, go to Ufile.ca and create an account, plug in all the data and see what it comes up with as a return. You can look over the numbers on the various pages, but it won't generate the actual finished tax return unless you pay. Since you don't need that, you can simply use the online software to save you the hassle of making all the calculations yourself. Additionally, the summary you see on your screen before paying is pretty close to the tax form itself, so you can get a rough idea of where your deductions are making a difference.

We are also in the same boat, with our return going from $1500 last year to $2400 this year - about a 60% increase.

 

[SandraC]

I usually have to pay, but I'm getting $1500 back this year. DH is getting over twice that. I thought our rsp's this year had something to do with it. DH does our paperwork. S

 

[Disney Brat]

Well we didn't get as much back as you guys, but we did get a lot more back than we usually do. We got $40 back last year, and this year we are getting $696. I do our taxes myself. Congrats to everyone on the refunds!!